MBIA Inc (MBI): Today's Featured Insurance Laggard

Tickers in this article: MBI

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

MBIA ( MBI) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole was unchanged today. By the end of trading, MBIA fell $0.23 (-1.6%) to $14.57 on light volume. Throughout the day, 1,828,743 shares of MBIA exchanged hands as compared to its average daily volume of 6,942,800 shares. The stock ranged in price between $14.50-$14.71 after having opened the day at $14.58 as compared to the previous trading day's close of $14.80. Other companies within the Insurance industry that declined today were: eHealth ( EHTH), down 2.8%, China Life Insurance ( LFC), down 2.5%, Crawford & Company ( CRD.A), down 2.3% and American Independence Corporation ( AMIC), down 2.2%.

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MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBIA has a market cap of $2.8 billion and is part of the financial sector. The company has a P/E ratio of 2.1, below the S&P 500 P/E ratio of 17.7. Shares are up 88.5% year to date as of the close of trading on Thursday. Currently there are no analysts that rate MBIA a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates MBIA as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, National Security Group ( NSEC), down 5.8%, Atlantic American ( AAME), down 4.9%, Federated National ( FNHC), down 3.8% and Stewart Information Services ( STC), down 3.4% , were all gainers within the insurance industry with PartnerRe ( PRE) being today's featured insurance industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).